This move is more strategic rather than just an investment. Its more of a pull rather than a push strategy, Counterpoint analyst Tushar Pathak told Business Insider.
Experts believe that Intels investment in Jio can help Reliance across three main verticals Artificial Intelligence, the 5G push and a possible debut of a Jio laptop.
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Using Intels AI expertise to manage data over 500 million subscribers
Bernsteins report from June estimated that Jio would capture nearly half the Indian market by 2025 calling the company the new king of Indian telecommunications. It forecasts that Jios subscriber base will jump from its current standing at 388 million subscribers to cross 500 million by 2023 to hit 609 million by 2025.
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Most of Intel Capitals investments in the past have focussed on artificial intelligence (AI), including edge computing, cloud technology and network transformation going from 4G to 5G.
When 500 million subscribers will interact and create a massive database, the role of AI is going to be huge for a company like Jio. A lot of their users will have a cross-platform approach, Pathak noted.
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According to Pathak, Intels impetus is to keep an eye on companies which have the ability to make the technological shift, something that only happens once every decade. In 2020, its the shift to 5G.
A Jio executive wrote on LinkedIn that the Jio and Intels leadership in ORAN and OpenRan will benefit the growth and transformation of next-generation networks. ORAN and OpenRan are open source 5G software. Intel has advanced Edge computing offerings across processors, analytics, AI and the access to this technology can help Jio Platforms engineering teams make significant pace with their 5G technology and IoT ecosystem rollouts, said a report by Greyhound research. Advertisement
Intels expertise in consumer electronics could also come in handy for the telecom giant. Jio had already marked its foray into the consumer electronics segment with mobiles and the partnership with Intel can help mark its debut in another segment laptops where Intel has a majority market share.
Intel can help Jio launch computing devices (Laptops and Tablets) and accessories like cameras. Might help to note that Jio is already aggressively pursuing its ambitions to become a smart city vendor in which cameras is a key ask. Also, the company has already launched IoT cameras for homes for both Smart TV and surveillance purposes, said the Greyhound report.Advertisement
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